US construction spending up tiny 0.1 percent

WASHINGTON - U.S. construction spending posted a slight increase in February as a rebound in construction of hotels and other nonresidential buildings offset a decline in housing. But activity was still being depressed by the harsh winter.

The Commerce Department says construction spending increased a scant 0.1 percent in February after a 0.2 percent drop in January. The increase left construction at a seasonally adjusted annual rate of $945.7 billion, 8.7 percent above the level of a year ago.

The small increase in February came from a 1.2 percent advance in nonresidential projects, led by a 3.5 percent rise in construction of hotels and motels. Spending on government projects edged up 0.1 percent, helped by a big gain at the federal level. Residential construction dropped 0.8 percent, the biggest setback since July.